New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-05-18
shGTs Of Union Pacifc,

.ge %uness sru onG a M wouId submit tnom WIN plea
sure TO the Commission il they desired him TO 90 so
one tune Nc ns Kept no s geGh es came with
him that gentleman had kept books TOT hinL
THg POOL AGREEMENT.
Mr Gould was here shown menoranonm OF al
agreement mado April 81 1873, between e'u,iey
nnIon Frederick L. Ames, Jay Gould, Q. g. Greeley
Jobn D. Perry, Robert J.. Carr, Adolphus Meier b.
W Lewis. ir, Henry Willard, John p Usher
Il NJ Edgcrton and Arteinas III. Holmes. The 90
ieet OF the agreement contribute 70 pool or com
mon fund to placed in the hands OF FREDERICK L. Aue
and Others as an executive committee the securities ana
stack Of the Kansas Pacific Railway Company the re-
snectve interess IN the pool 10 be rrorated 70 INC
smounts Of The securiiles and stock taken az certain
values Furthermore the general purpose OF lhf pa
pacific companies so that the two roads should Dc
operated as continuous line and IN all respects as {Gn
thereto and in order that the interests of the puqc ana
Of the Government might he better suserte. l 80 &
provide for the payment other satisfaction 10 nc
Denver Extension bOndhoder to provide Tor ana secure
the payment Of the bonds secured by the first mortgage
up0n the main line according 10 the terms OF SAT-
mortgages, and also for the payment Oh ihe Do,,s
alton for tle value thereof of the securities contn ga
by the pool Mr. Gould IA shown by ne seheae
10 have furnished of funding bonds $O9iOOoi IN
stamped income bonds. $4,000; stamped Income oonhs,
S243. 200; second land grants. $1oVVGo Wiz" Len iy
submitted 10 the witness lie felea hih' ne n"" i
gotten the agreement entirely. ., 90 ,,, como
Q-Your largest interest IL represented as peg s1e
thing over SO 0O0OG0 fhe stamped income hohds,
long before signing that agreement had You acquired
that interest Al do not know VIII ascerthI' ~
Mr. Could said be did not renenher whetnei ne! WIZ
bonrht i'm small or large blocks but woGd inform me
committee laer neither did he remember the pee paid
They were entered In the funding agreement al ~
Q-Do you remember tue fact that they Merc %
in that agreement at much higher pre- c Ids pa s
You Al presume they were ail NOT quic ps Vii
that they were considerably higher, but my DooAS VIII
The witness said he could not give the names Of the
brokers. Explaining further the object 81 te "sleens
be saidi II relates to the nnaims Oh tTn the con-
pany ON It's feet There WAS great mass OF seeeS
OF course you can see what innumorable qlcsuons
would arise ia to what the income Of the road now
10 was divided. etc saw the only way our WIS W 'N
The entire mass ard get them into one partys hais anu
then the principal down and give one new a.
covering all the properly, and eNentuay uho ~ oNei!
IN rctjre nil liens subsequent first mortgages Then
these we're TO be masscd together ana converter mo
stock Nv plan was consolidated mortgage. did not
think the parties would surrender bonds and take stock
81 OR IS Z Al don't remember know led on.
o.-When you led OF did you think You were going 70
ooTsn't il a fact that You knew they would have
brought You great deal Al presumed hS ;
much had to with it, The plan was gotten up as me
best We could do with our knowledge OF INC properly
and the object was that others should come III aiso
THE AGREEMENT MODIFIED.
o-When was this agreement modified 50 as TO take
the shape OF consolidated mortgage Instead oil STOCK
call your attention the fact that the agreement you
have before you is dated April 1875 and tho conso
dated mortgage is dated In 1850. A-The scheme took
this shape some tlulc subsequent !" thiS sc ~
not remember when.
o-Do Won know who drew the agreement Al
think Judge Usher did that he part OF the time IN
NewYork and part Of the time West; had no CORE
spondence with him; allour communications were verbal
O-What was the object OF the consolidated mortgage
Alt WAS fund all this heterogeneous mass OF sccur-
ties into one uni security, and at the same tluc 10
make saving In the annual interest ana also III the
o|fhe essential feature TO make this was TO
establish communication rates which should be acceptable
TO holders of these various classes OF securities y,
Yes sir; that is, II they came Ia on tnis Dss; d ~,
matter discussed by me with Judge Oshcr ana MT
Holmes and other representatives OF various Interests
THINK the amount 81 ane noa %s Zoo and
sidney Dillon $4,000. do not know whether hal
bought me st. %nns Pe@pe w So Se e"mp
ty covering large property which the people "ou"
Q~Did YOU confer with any other large holders Al
only those who have signed ibis agreement had
with myself and thought II was fair price Tor
myself and also a fair price for others. Experience
showed MS that the first plan would not 20 through ana
must have conducted the negotiations with the - 0us
people Ny recollection Is they came ola here and 81"
me- They sort OF tired out aud wanel to sell ana
they accepted told them they might pnt III
as much is little a. they pleased -.,..
ing his dealings with Mr. sage DC sld nc presumed ~
permitted Mr. sage 70 come IN Tor & , sHca f S
consolidation 10000 shares OF Kansas Pacific, fun
o. What was the credit of the road AZ the time You
began 10 buy these stamped income bonds Al pre-,
sune OF course credit poor the bonds would
nCt have been selling al their low price.
Q.-why did YOU prefer to buy that class OF bonds
rather than others A.-Wen, do not know; probably
they the lowest
Odd you buy any bonds abroad Al had nego-
tiaiious with some Amsterdam people j Lizard thcy
wanted 10 sell eat. | fret said would not 90 over
there They usually spend day or two smoking before
they make up their minds But NJ last went over. l
got there in the morning 10 o'clock IN July or August
1879 walked up and had my breakfast, saw the parties
AZ H. and by IL bought them out Tue amount was
50 and think paid "a. As that is the igurc AT
which others who in with me took portion Oh the
lot. ,,-., . A.,
different roads other, tracing tue uncs on map
before him He then submitted four papers showing the
proportions allotted to the several parties IN interest
ST. JOSEPH BRIDGE BUILDING CoSPANr's BONDS AND
STOCK